Archive for October, 2012

Philip Morris Indonesia plans to boost its production and export capacity, reports the Jakarta Globe. The company intends to build a new factory in West Java in 2013 that will produce non-clove cigarettes, especially Marlboros.

Philip Morris Indonesia, which employs some 200 people at its existing factory in Bekasi, also in West Java, plans to hire 100 additional workers at the new factory.

A planned review of the European Union Tobacco Products Directive will proceed once a replacement has been found for Health Commissioner John Dalli, said EU spokeswoman Pia Ahrenkilde Hansen on Oct. 17. Dalli resigned following an investigation of a complaint by Swedish Match made in May.

The EU anti-fraud office, OLAF, found evidence that Dalli knew a “person close to him” was requesting a “substantial” sum of money from Swedish Match in return for seeking to influence the future legislative proposal removing or softening the existing ban on snus in the EU.

Dalli denies the claims and says he resigned to give himself “a free hand in opposing the allegations.” He also plans legal action to clear his name.

Malta Today identified the person who approached Swedish Match as Silvio Zammit, a well-known Maltese entrepreneur and councilor for the city of Sliema. Zammit resigned from the council five hours after the announcement of Dalli’s resignation.

Swedish Match said it takes the incident very seriously and expects the European Commission will “ensure a transparent and legally fair process for the proposal of a new Tobacco Products Directive, which is expected during the autumn.”

The company said it expects the available scientific evidence on the significantly lower health risks of snus compared with cigarettes to be considered in the review process.

Commenting on the investigation, a spokesman for the Union of Tobacco Growers in Europe called on the commission to abandon the proposals developed by Dalli and begin again with a fair and transparent process that results in tobacco regulations that will both protect a public health and tobacco farmers’ jobs.

Philip Morris International reported net revenues, excluding excise taxes, of $7.9 billion in the third quarter of 2012, down 5.3 percent from the comparable 2011 quarter. Its cigarette shipment volume was down by 1.3 percent. Operating companies’ income was down 1.5 percent, to $3.7 billion.

Excluding the impact of currency exchange rates and acquisitions, reported net revenues, excluding excise taxes, were up by 3.4 percent, and reported operating companies’ income was up by 4.8 percent.

“Despite the difficult comparisons in the third-quarter, we remain confident that the fundamentals of our business are solid as a whole, which is testament to our progress, especially in our Asia and EEMA regions,” said Louis C. Camilleri, chairman of the board and chief executive officer.

The Molins Machine Co. was founded on Oct. 18, 1912—exactly one hundred years ago. The Mark 1 cigarette making machine introduced in 1928 was the first of its kind and led to a long line of machinery that became the latest standard for quality. During these years the company revolutionized the tobacco industry with innovative engineering that shaped cigarette and packaging production across the world.

Today Molins remains a prominent company in the industry with one of the largest installed bases of machinery in the world. A dedicated service to customers for spares and maintenance has fostered relationships that have endured for very many years.

“With new machinery like the Octave and Alto plus other upgrades and machinery in the pipeline, new and old customer relationships getting stronger and the same dedication to quality and customer satisfaction, it’s clear that Molins will be around for a long time yet… perhaps even, for another hundred years,” the company wrote in a press statement.

John Dalli has today announced his resignation as a member of the EU Commission, with immediate effect, according to an EU Commission press statement.

Dalli informed the president of the European Commission, Jose Manuel Barroso, of his decision following an investigation by OLAF, the EU’s antifraud office, into a complaint made in May by Swedish Match.

Swedish Match alleged that a Maltese entrepreneur had used his contacts with Dalli to try to gain financial advantages from the company in return for seeking to influence a possible future legislative proposal on tobacco products, in particular on the EU export ban on snus. As soon as the Commission received the complaint it immediately requested OLAF to investigate.

The OLAF report did not find any conclusive evidence of the direct participation of Dalli but did consider that he was aware of these events. No transaction was concluded between the company and the entrepreneur and no payment was made.

The OLAF report showed the European Commission’s decisionmaking process and the position of the services concerned has unaffected by the matters under investigation.

The final OLAF report and its recommendations are being sent by OLAF to the Attorney General of Malta.

After the president informed Dalli about the report received from OLAF, Dalli decided to resign in order to be able to defend his reputation and that of the Commission. Dalli categorically rejects these findings.

Vice President Maros Sefcovic will take over the portfolio of Dalli on an interim basis until a new Commissioner of Maltese nationality is appointed in accordance with article 246 (2) of the Treaty on the functioning of the European Union.

Khanh Viet Corp. (Khatoco) of Vietnam officially opened its new threshing plant in Nha Trang City on Oct. 2, 2012. Participating in the ceremony were various government officials, multinational tobacco merchants/processors and representatives of Evans Mactavish, which supplied the machinery for the facility.

A seaside resort with first-class hotels and exquisite food, Nha Trang City provided a stunning backdrop for the event

The project took five years to complete. Tests and production runs started in March 2012, while full production commenced Oct. 1.

The factory is state-of-the-art facility, processing to international standards and meeting requirements for all buyers.